Foran Mining — Investor Presentation (August 2015)
32 slides from Foran Mining's investor presentation, Aug 12, 2015
Slide 1: Building a New Canadian VMS Camp
Building a New Canadian VMS Camp August 2015 www.foranmining.com
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains "forward-looking information" (also referred to as "forward looking statements") which may include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects
Slide 3: 5 Reasons to Invest in Foran
5 Reasons to Invest in Foran Positive PEA at Management McIlvenna Bay – a team with a large copper-zinc proven track deposit with record growth potential New discoveries Excellent location in the Hanson & infrastructure Lake Camp in a pro-mining jurisdiction Solid shareholder base – mining industry
Slide 4: Board of Directors & Management
Board of Directors & Management Darren Morcombe Executive Chairman Patrick Soares President & CEO Directors Sharon Dowdall Former Chief Legal Officer for Franco-Nevada Maurice Tagami VP Mining Operations for Silver Wheaton Bradley Summach CFO of BBS Aircraft & President of Summach Ventures David M.
Slide 5: Capital Structure
Capital Structure 90.8 M 2.0 M 8.0 M 100.8 M I&O Warrants Options Fully Diluted Share Price & Capitalization Ownership Recent: $0.14-$0.16 Institutional 25% 52 Week High-Low: $0.48-$0.13 Market Cap: ~$15M Mgt. & Directors 17% Pierre Lassonde 11% Treasury $2.6M Cash (Mar. 31/15) Corporate 3% Warrants
Slide 6: Overview
Overview 100% owned McIlvenna Bay Deposit & Hanson Lake Camp Saskatchewan ranked #1 mining jurisdiction in Canada, #2 globally by the Fraser Institute Excellent access & infrastructure: one hour drive from a major mining centre Positive PEA at McIlvenna Bay: NPV7% of $382M ($263M post-tax) IRR of 22
Slide 7: Community Involvement
Community Involvement Foran has established a positive relationship with First Nations & other stakeholders in the area Foran continues to engage & involve local stakeholders Contractors & employees hired from local Peter Ballantyne Cree Nation (PBCN) communities CanNorth Environmental Services, an
Slide 8: Location
Location Foran is not treating historic (non-NI-43-101 compliant) resource estimates as current, additional work required to bring historic resource to current 8
Slide 9: The Case for Zinc
The Case for Zinc Improved western demand & high Chinese imports has resulted in low inventories As major mines close on or before schedule the zinc market continues to tighten With no significant new projects underway to replace lost production the market is expected to continue to tighten As the z
Slide 10: McIlvenna Bay is the only development project with significant zinc exposure
McIlvenna Bay is the ONLY development project with significant zinc exposure that checks all the boxes… Project Advantages: Large resource base & long mine life Clean, marketable concentrates Deposit open - potential to add to mine life Excellent potential to develop satellite deposits Location Adva
Slide 11: McIlvenna Bay Mineral Resource
McIlvenna Bay Mineral Resource1 A large resource base open to depth 2013 McIlvenna Bay Indicated Mineral Resource Estimate (US$60t/ NSR cut-off) Zone Tonnes Cu Zn Au Ag CuEq ZnEq Indicated (kt) (%) (%) (g/t) (g/t) (%) (%) Main Lens – Upper West Zone 2,148 1.66 4.10 0.88 31 2.79 18.75 Main Lens – Zon
Slide 12: McIlvenna Bay Metallurgy
McIlvenna Bay Metallurgy Clean, marketable concentrates amenable to conventional grinding & flotation Copper Zinc Copper Stockwork Zone Cu Conc. #1 NA Composite Head Grade: Grade: 1.45% Cu, 0.34 g/t Au, 8 g/t Ag 29% Cu, 6.4g/t Au, 126g/t Ag Recoveries: 94% Cu, 85% Au, 77% Ag Copper Stockwork Main Le
Slide 13: McIlvenna Bay PEA Summary
McIlvenna Bay PEA Summary1 Estimated costs & design are in-line with existing mining operations in the region Pre-Tax Post-Tax NPV7% $382M $263M IRR 22% 19% Payback 4.1 years 4.1 years Mine Life 14 years Plant Throughput 5,000 tpd CapEx2 C$249M Pre-Production C$150M Sustaining Cash Costs3 Cu US$0.84
Slide 14: McIlvenna Bay Payable Metal Production
McIlvenna Bay Payable Metal Production 3% 1% 10% Copper 30% Zinc 56% Gold Silver Lead Metal Per annum LOM lbs. tonnes lbs. tonnes Zinc 59M 26,717 805M 365,101 Copper 38M 17,055 514M 233,013 Lead 1.2M 544 16M 7,167 oz. oz. Gold 16,000 218,000 Silver 398,000 5,437,000 14
Slide 15: McIlvenna Bay Conceptual Mine Design
McIlvenna Bay Conceptual Mine Design 35m of Dolomite Decline & Sand Cover Shaft 200m L 0m L 5,000 tpd Resource underground mine -200m L Shell Ramp & shaft to optimize resource Ramp extraction -400m L Broad thicknesses & steep dip of mineralization -600m L amenable to longhole stoping Structural back
Slide 16: The Hanson Lake Camp
The Hanson Lake Camp McIlvenna Hanson Bay Deposit Lake Mine (Past Producer) Target A Bigstone Deposit Balsam Property McIlvenna Hanson Bay Property Property Bigstone Property Thunder Zone 16
Slide 17: Thunder Zone Cu-Zn Discovery
Thunder Zone Cu-Zn Discovery 7km SE of McIlvenna Bay 100% Foran-owned Cu- & Zn-rich VMS mineralization 2013 discovery hole intersected high-grade massive sulphides (4.1% Cu, 0.43g/t Au over 3.7m) McIlvenna 2015 follow-up drilling (1,914m Hanson Bay Deposit in 5 ddh) confirmed & expanded Lake Mine (P
Slide 18: Bigstone Cu-Zn Deposit
Bigstone Cu-Zn Deposit 25km SW of McIlvenna Bay 100% Foran-owned Cu- & Zn-rich VMS mineralization Historic mineral resource1: 3.75 Mt of 2.03% Cu,McIlvenna 0.33g/t Au (1% Cu cutoff) & Bay 0.53 Mt of 9.6% Zn, 16g/t Ag (5% Zn Hanson cutoff) Deposit Lake Mine 2: 2015Producer) (Past infill drilling (2,5
Slide 19: Bigstone Cu-Zn Deposit
Bigstone Cu-Zn Deposit Long Section – Looking Northwest 19
Slide 20: Hanson Lake Camp Regional Exploration
Hanson Lake Camp Regional Exploration Target A 1.2-1.6km long high-priority target Thunder Zone Further drill testing required Cu-Zn Discovery Balsam McIlvenna Bay Deposit 13.9Mt of 1.96% CuEq (indicated) 11.3Mt of 2.01% CuEq (inferred) McIlvenna Bay Deposit Resource Shell 2013 DEEP-EM survey 3D ren
Slide 21: The Road Ahead
The Road Ahead Positive PEA results demonstrate that McIlvenna Bay should advance to a feasibility study Winter 2015 drilling success demonstrates the potential to define high-grade satellite deposits around McIlvenna Bay Foran’s objective is to evaluate the economic potential of the Hanson Lake Cam
Slide 22: Contacts
Contacts Patrick Soares Fiona Childe President & CEO VP, Corporate Development 904-409 Granville Street, 1000-36 Toronto St. Vancouver, BC, V6C 1T2 Toronto, ON, M5C 2C5 ir@foranmining.com 416-363-9229 22
Slide 23: Appendices
cN Append ices FO CORPORATION —— il -www.foranmining.com
Slide 24: Ownership & Royalties
Ownership & Royalties McIlvenna Bay Property (100% Foran) • Cameco Corporation and BHP Billiton collectively hold a 1% NSR royalty interest, which can be purchased by the Company at any time for $1M • Some of the claims that make up the McIlvenna Bay property are subject to a Net Tonnage Royalty of
Slide 25: McIlvenna Bay Mineral Resources
McIlvenna Bay Mineral Resources1 1 Effective date Jan. 1, 2013; Metal prices for 2013 Resource are US$3.25/lb. Cu, US$1.10/lb. Zn, US$1,400/oz. Au & US$25/oz. Ag; The base case uses a US$60/t NSR cut-off using provisions for metallurgical recoveries, smelter payables, refining costs, freight, and ap
Slide 26: McIlvenna Bay: Copper Stockwork Zone (CSZ)
McIlvenna Bay: Copper Stockwork Zone (CSZ) Indicated: 7.61 MT @ 1.60% Cu, 0.30% Zn, 0.50 g/t Au Inferred: 5.48 MT @ 1.56% Cu, 0.47% Zn, 0.42 g/t Au Indicated Inferred View looking down and South West 26
Slide 27: McIlvenna Bay: CSZ + UW MS + Zone 2 MS
McIlvenna Bay: CSZ + UW MS + Zone 2 MS Indicated: 7.61 MT @ 1.60% Cu, 0.30% Zn, 0.50 g/t Au Inferred: 5.48 MT @ 1.56% Cu, 0.47% Zn, 0.42 g/t Au Indicated: 2.15 MT @ 1.66% Cu, 4.10 % Zn, 0.88 g/t Au Inferred: 2.91 MT @ 1.63% Cu, 3.68% Zn, 0.51 g/t Au Indicated Inferred View looking down and South Wes
Slide 28: McIlvenna Bay Resource Footnotes
McIlvenna Bay Resource Footnotes 1 Effective date January 1, 2013; CIM definitions were followed for Mineral Resources; CuEq = copper equivalent; ZnEq = zinc equivalent; NSR = Net Smelter Return. 2 The base case mineral resource is estimated based on 178 diamond drill holes and a NSR cut-off grade o
Slide 29: PEA Sensitivity Analyses
PEA Sensitivity Analyses McIlvenna Bay Metal Price Sensitivity Analysis -10% Base Case +10% Zinc (US$/lb.) 0.95 1.06 1.17 Copper (US$/lb.) 2.77 3.08 3.39 Lead (US$/lb.) 0.84 0.93 1.02 Gold (US$/oz.) 1,114 1,238 1,362 Silver (US$/oz.) 15.30 17.00 18.70 Pre-tax NPV7% $200.6M $381.7M $562.9M IRR 15.4%
Slide 30: VMS Deposit Size Comparison
VMS Deposit Size Comparison 62.5 30 McIlvenna Bay 13.9Mt indicated 25 11.3Mt inferred VMS deposits form in clusters Majority of the deposits in each 20 VMS cluster are 3-5 Mt, with Deposit Size potential for 1-2 large (+20Mt) to (Mt) very large (+50Mt) deposits 15 This clustering of VMS mineralizati
Slide 31: Regional Exploration
Regional Exploration 2013 DEEP-EM survey identified 2 high-priority targets: Target A 1.6 km long EM conductor - similar size & character as McIlvenna Bay Initial drill test inconclusive – further testing required to determine source Target B (Thunder Zone) Final hole in winter 2013 program hit high
Slide 32: Bigstone Deposit – Section 1675N
Bigstone Deposit – Section 1675N High-grade Cu mineralization in BS-15-239: 2.0% Cu over 105m, incl. 4.1% Cu over 20m & 3.4% Cu over 19.0m 32 Section Line 1675N (looking northeast)